Turkiye's int'l debt sales could hit record in 2024

LONDON, Dec 21 (Arab News): Turkiye's pivot back to orthodox fiscal policies could pay off with record debt issuance and the continued return of foreign investors in 2024, JPMorgan Managing Director Stefan Weiler told Reuters.
International investors had fled Turkiye amid years of low interest rates, despite soaring inflation, as well as a complex web of financial regulations and foreign exchange controls. But after a surprisingly strong election victory in May, President Tayyip Erdogan's move back toward orthodox monetary policies began luring back international capital.
"From our side, we see Turkiye as a potential big story for next year," Weiler, the head of JPMorgan's CEEMEA debt capital markets, told Reuters. He added that he could easily see issuance from the country exceed $25 billion next year.
The central bank under Hafize Gaye Erkan, who was appointed as governor in June, began tightening interest rates straight away. But it was the bank's larger, more aggressive autumn hikes that re-launched debt sales, with domestic appliance maker Arcelik in September selling the first international bond since the start of 2022.
Issuance from corporates, banks and the government for 2023 exceeds $18 billion, the second highest on record, according to JPMorgan calculations.